Business / Finance Glossary

Break-Even Analysis: An analysis of the level of sales at which a project would make zero profit.

Break-Even Lease Payment: The lease payment at which a party to a prospective lease is indifferent between entering and not entering into a lease arrangement.

Break-Even Payment Rate: The prepayment rate of an MBS coupon that will produce the same cash flow yield (CFY) as that of a predetermined benchmark MBS coupon. Used to identify for coupons higher than the benchmark . . . View Full Definition

Break-Even Point: Refers to the price at which a transaction produces neither a gain nor a loss. In the context of options, the term has the additonal definitions: 1. Long calls and short uncovered calls: str . . . View Full Definition

Break-Even Tax Rate: The tax rate at which a party to a prospective transaction is indifferent between entering into and not entering into the transaction.

Break-Even Time: Related: Premium payback period.

Breakeven Analysis: An analysis tool that models how revenue, expenses, and profit vary with changes in sales volume. Breakeven analysis estimates the sales volume needed to cover fixed and variable expenses.

Breakeven Point: The sales level at which revenues equal expenses (fixed and variable).

Breaking The Syndicate: Terminating an agreement among underwriters, specifically the investment banking group assembled to underwrite the issue of a security.

Breakout: A rise in a security's price above a resistance level (commonly its previous high price) or a drop below a level of support (commonly the former lowest price.) A breakout is taken to signify . . . View Full Definition

Breakpoint Sale: For mutual funds, refers to the investment amount necessary to make the fundholder eligible for a reduced sales charge. See: Letter of intent; right of accumulation.

Breeden, Douglas T.: Inventor of one of the foundational asset pricing models in finance, the consumption based capital asset pricing model. Chairman of Smith Breeden Associates.

Bretton Woods Agreement: An agreement signed by the original United Nations members in 1944 that established the International Monetary Fund (I.M.F.) and the post-World War II international monetary system of fixed . . . View Full Definition

Bridge Financing: Interim financing of one sort or another used to solidify a position until more permanent financing is arranged.

Bring It Out: In the context of general equities, 'make stock available for sale to indicated buyers.'

British Clearers: The large clearing banks that dominate deposit taking and short-term lending in the domestic sterling market.

Broad Tape: An expanded version of the ticker tape, which is displayed on a screen in the board room of a brokerage firm and shows constantley updated financial information and news.

Broken Up: Used for listed equity securities. Prevented from executing a trade (committed to upstairs) due to exchange priority rules excluding one's order (e.g., higher bid/lower offer on floor, marke . . . View Full Definition

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